During 2016,Beta Ltd incurred expenses of $250 and earned a net profit of $50.Retained profits at 1 January 2016 stood at $70 and dividends declared and paid totalled $30.
-What was the balance of Beta Ltd's retained profits at 31 December 2016?
A) $30
B) $50
C) $90
D) $150

Question

Quizplus · Accepted Answer

The formula for calculating retained profits is:

Retained profits = Opening retained profits + Net profit - Dividends

Using the information provided:

Opening retained profits = $70 
Net profit = $50 
Dividends = $30

Retained profits = $70 + $50 - $30 = $90

Therefore, the balance of Beta Ltd's retained profits at 31 December 2016 was $90. Hence, the correct answer is C.

During 2016,Beta Ltd Incurred Expenses of $250 and Earned a Net